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Welcome to Episode #285 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The banks have been out of favor with investors since the Great Recession in 2008.
But after 14 years, will the tide be turning?
Wall Street doesn’t think so, as most bank stocks have sold-off in 2022 but that means they are cheaper than ever. And some are now paying juicy dividends, with yields over 4%.
KeyCorp is a Cleveland-based regional bank with a market cap of $16.5 billion.
KeyCorp shares have fallen 23% year-to-date and are now cheap with a forward P/E of just 7.9. While earnings are expected to fall 15.3% in 2022, analysts see earnings rising in 2023 by 10.9%.
Peoples Bancorp was founded in 1902 and is headquartered in Marietta, Ohio. It has 136 locations in Ohio, West Virginia, Kentucky, Virginia, Washington DC, Maryland.
Peoples Bancorp is a small cap bank with a market cap of $770 million.
Earnings are expected to rise 42% in 2022 and another 8.5% in 2023.
Shares of Peoples Bancorp have fallen 14.4% year-to-date and have a P/B ratio of just 0.95.
It pays a juicy dividend, currently yielding 5.6%.
If you’re looking for income, should Peoples Bancorp be on your list?
First Hawaiian is the holding company for First Hawaiian Bank, Hawaii’s oldest and largest financial institution. Founded in 1858, it is headquartered in Honolulu and has 46 branches in Hawaii, 3 branches in Guam and 2 in Saipan.
It has a market cap of $2.97 billion.
Shares of First Hawaiian have fallen 15% year-to-date and it’s cheap with a P/B ratio of 1.3.
It pays a dividend currently yielding 4.5%.
If you’re looking for a bank in the West, should First Hawaiian be on the list?
New York Community Bancorp is the parent of New York Community Bank and has 237 branches in New York, New Jersey, Ohio, Florida and Arizona. Headquartered in Hicksville, New York, it has a market cap of $4.2 billion.
Shares of New York Community Bancorp have fallen 25% year-to-date and are at new 52-week lows.
It is dirt cheap with a forward P/E of 6.9.
While New York Community Bancorp is a Zacks Rank #5 (Strong Sell), earnings are expected to be up 6.5% in 2022 and up 0.9% in 2023.
After the sell-off, its dividend is now yielding 7.5%.
Is New York Community Bancorp’s big dividend too good to be true?
What Else do you Need to Know About the Bank Stocks?
Tune into this week’s podcast to find out.
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Bank Stocks with Big Dividends (Over 4%)
Welcome to Episode #285 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
The banks have been out of favor with investors since the Great Recession in 2008.
But after 14 years, will the tide be turning?
Wall Street doesn’t think so, as most bank stocks have sold-off in 2022 but that means they are cheaper than ever. And some are now paying juicy dividends, with yields over 4%.
Is it time to get back into the banks?
Bank Stocks with Big Dividends (Over 4%)
1. KeyCorp (KEY - Free Report)
KeyCorp is a Cleveland-based regional bank with a market cap of $16.5 billion.
KeyCorp shares have fallen 23% year-to-date and are now cheap with a forward P/E of just 7.9. While earnings are expected to fall 15.3% in 2022, analysts see earnings rising in 2023 by 10.9%.
It pays a dividend yielding 4.5%.
Is this a buying opportunity in KeyCorp?
2. US Bancorp (USB - Free Report)
US Bancorp is headquartered in Minneapolis and has a market cap of $68.9 billion. Shares have fallen 17% year-to-date.
US Bancorp now trades with a forward P/E of 10.3. While earnings are expected to fall 13.1% in 2022, they are expected to rebound 18.5% in 2023.
US Bancorp pays a dividend yielding 4%.
Should US Bancorp be on your short list?
3. Peoples Bancorp (PEBO - Free Report)
Peoples Bancorp was founded in 1902 and is headquartered in Marietta, Ohio. It has 136 locations in Ohio, West Virginia, Kentucky, Virginia, Washington DC, Maryland.
Peoples Bancorp is a small cap bank with a market cap of $770 million.
Earnings are expected to rise 42% in 2022 and another 8.5% in 2023.
Shares of Peoples Bancorp have fallen 14.4% year-to-date and have a P/B ratio of just 0.95.
It pays a juicy dividend, currently yielding 5.6%.
If you’re looking for income, should Peoples Bancorp be on your list?
4. First Hawaiian, Inc. (FHB - Free Report)
First Hawaiian is the holding company for First Hawaiian Bank, Hawaii’s oldest and largest financial institution. Founded in 1858, it is headquartered in Honolulu and has 46 branches in Hawaii, 3 branches in Guam and 2 in Saipan.
It has a market cap of $2.97 billion.
Shares of First Hawaiian have fallen 15% year-to-date and it’s cheap with a P/B ratio of 1.3.
It pays a dividend currently yielding 4.5%.
If you’re looking for a bank in the West, should First Hawaiian be on the list?
5. New York Community Bancorp (NYCB - Free Report)
New York Community Bancorp is the parent of New York Community Bank and has 237 branches in New York, New Jersey, Ohio, Florida and Arizona. Headquartered in Hicksville, New York, it has a market cap of $4.2 billion.
Shares of New York Community Bancorp have fallen 25% year-to-date and are at new 52-week lows.
It is dirt cheap with a forward P/E of 6.9.
While New York Community Bancorp is a Zacks Rank #5 (Strong Sell), earnings are expected to be up 6.5% in 2022 and up 0.9% in 2023.
After the sell-off, its dividend is now yielding 7.5%.
Is New York Community Bancorp’s big dividend too good to be true?
What Else do you Need to Know About the Bank Stocks?
Tune into this week’s podcast to find out.